What does it take to be a good trader? I think most traders do not even bother to think about that question. But it is key to success to understand what characteristics is needed to make you excel in your choice of career.
The renowned trading coach, Brett Steenbarger, Ph. D, pointed out ten characteristics he had seen in the successful traders he had followed. Five of them are:
- The amount of time spent on their trading outside of trading hours (preparation, reading, etc.)
- Dedicated periods to reviewing trading performance and making adjustments to shifting market conditions
- The ability to stop trading when not trading well to institute reviews and when conviction is lacking
- The ability to become more aggressive and risk taking when trading well and with conviction
- A keen awareness of risk management in the sizing of positions and in daily, weekly, and monthly loss limits, as well as loss limits per position